The government said Friday it was using its last stopgap measure to avoid exceeding the current $14.3 trillion debt limit. Administration officials, economists and the financial markets have warned that missing the August 2 deadline and precipitating a government default would send convulsions through an already weakened economy.
Obama had held five straight days of meeting with congressional leaders at the White House, but none of the three options he proposed - deficit cuts of $4 trillion, $2 trillion or $1.5 trillion over 10 years - were unlocking enough support to increase the debt ceiling by the $2.4 trillion Obama wants to make it last beyond the 2012 elections.
Essentially declaring those discussions over, Senate Republican leader Mitch McConnell said Friday: "Now the debate will move from a room in the White House to the House and Senate floors."
In search of a deal, Obama has used a combination of private meetings with congressional leaders and high visibility press conferences, radio addresses and public statements in an effort to win the public to his side. His pitch is also aimed at independent voters, to whom he is presenting himself as a willing compromiser.